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Technology Stocks : Disk Drive Sector Discussion Forum -- Ignore unavailable to you. Want to Upgrade?

To: Stitch who wrote (5917)	3/26/1999 4:26:00 AM
From: Z Analyzer	Respond to of 9256

<<But in simple terms it is also getting more and more painful to do business these days, maybe especially for our DD faves. Margins have gone to zip, competition continues to heat up>> In theory, margins should be high enoungh to provide adequate profitability over the entire cycle including the low periods. Seems we have a long way to go in terms of profitability during prosperous times before that happens. On the other hand, with all the competitors still in business, none of us should be surprised by cometition heating up again as soon as the Q4 demand bulge went away. -Z

To: Stitch who wrote (5917)	3/26/1999 1:41:00 PM
From: La Traguhs	Read Replies (2) \| Respond to of 9256

Stitch, Without a doubt we've seen what I'd call lose alliances in the past. And, yes QNTM/Tivo/Replay are important "market" alliances, but what I'm referring to is the PC/HDD supplier/vendor or "foodchain" alliances when I refer to "tight alliances" - beyond just second sourcing. In fact I'm referring to a departure from second sourcing. More specifically, an example would be like Conner getting heads only from Yamaha and media only from HMT until either supplier goofs. Obviously, if you can develop confidence (what I meant by hitching up to the right post) that your selected partners will help you win by providing their best pricing, technology, quality, delivery and terms, you improve your odds for success. Now - that having been said - I believe that increased implementation of the "tight strategic alliances" will be a big positive for the overall industry. After all, how much longer can component suppliers and some of the drive companies continue to work for free?? Regards, LT